Content Area Inventory Valuation under Variable Costing Lane Company produced 50,000 units during its first year of operations and sold 47,300 at $12 per unit. The company chose practical activityat 50,000 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials $123,000

Direct labor 93,000

Variable overhead 65,000

Fixed overhead 51,000

Required: 1. Calculate the cost of one unit of product under variable costing. Round your answer to the nearest cent.

2. Calculate the cost of ending inventory under variable costing.